Slide 1: Q1 2022 Earnings Release
Q1 2022 Earnings Release April 21, 2022
Slide 2: Caution Concerning Forward-Looking Statements
Caution Concerning Forward-Looking Statements This presentation contains statements that we believe to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact are forward-looking statements.
Slide 3: Key Definitions
Key Definitions • Except as otherwise noted all references to 2022 and 2021 represent our results from continuing operations for the period indicated, presented on an adjusted basis • "Core sales" refers to GAAP revenue from continuing operations excluding (1) the impact of currency translation and
Slide 4: Executive Summary
Executive Summary ✓ Strong financial results for Q1’22 ─ Sales growth of 15% Q1’22 Results Q1’21 Results ─ Segment Income grew 5% ─ Adjusted EPS increased 5% Sales $1.0B $866M ✓ Announced agreement to acquire Manitowoc Ice – a leading provider of ice machines Segment Income $172M $164M ✓ Entering se
Slide 5: Building a Track Record of Consistent Growth
Building a Track Record of Consistent Growth Expected Growth Drivers Grow the core to Strategic growth Transformation to Balance sheet to provide drive consistent initiatives to accelerate unlock value and flexibility and value creation the top line fund growth upside acceleration 5 Q1 2022 Earnings
Slide 6: Transformation to Enhance Value Creation
Transformation to Enhance Value Creation Execution Underway Centered Around Four Key Themes • Pricing Excellence • Strategic Sourcing • Operations Excellence • Organizational Effectiveness Enablers Transformation to • Focus & Prioritization unlock value and fund growth • Digital Enterprise (ERP & Da
Slide 7: Advancing Total Water Management and Building a Stronger Commercial Water Solutions Platform
Advancing Total Water Management and Building a Stronger Commercial Water Solutions Platform* Core Additional End Markets Pentair Everpure Manitowoc Ice Pentair KBI Services Commercial Water ~$225M ~$325M ~$125M Solutions ~$675M • Respected industry brand • Respected industry brand • National servic
Slide 8: Q1'22 Pentair Performance
Q1’22 Pentair Performance Sales Segment Income $38M $98M $1.0B $88M ($1M) ($12M) $20M 15% $164M Flat $172M $866M YoY $7M * ($89M) $7M * 5% YoY ROS ROS 2 pts 10 pts 4 pts (1 pt) 15 pts 19.0% 8.4% 0.1% (10.3%) 0.0% 17.2% Acq./ (1 pt) Growth/ Q1’21 Volume Price FX Q1’22 Q1’21 FX Inflation Prod. Q1’22 D
Slide 9: Q1'22 Consumer Solutions Performance
Q1’22 Consumer Solutions Performance Sales Segment Income $36M $641M $70M $61M ($3M) ($1M) $26M $521M 23% $131M $3M $139M YoY $5M * $3M * ($64M) 6% YoY ROS ROS 5 pts 12 pts 7 pts (1 pt) 23 pts 25.1% 8.1% 0.0% (12.2%) 0.6% 21.6% Acq./ (1 pt) Growth/ Q1’21 Volume Price FX Q1’22 Q1’21 FX Inflation Prod
Slide 10: Q1'22 Industrial & Flow Technologies Performance
Q1’22 Industrial & Flow Technologies Performance Sales Segment Income $26M $2M $358M $29M $344M ($8M) ($1M) ($6M) 4% $50M $52M YoY ($24M) $2M * $4M * ($2M) 4% YoY ROS ROS (2 pts) 8 pts 0 pts (2 pts) 4 pts 14.5% 7.6% 0.0% (7.0%) (0.5%) 14.6% Acq./ (1 pt) Growth/ Q1’21 Volume Price FX Q1’22 Q1’21 FX I
Slide 11: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Debt Summary Cash Flow ($M) Q1 2021 Q1 2022 $1,091M* Maturity Net Income - Continuing Ops $131 $119 Amortization 7 7 Subtotal $138 $126 $496M 45% Fixed 2022 – 2029 Depreciation 13 13 Capital Expenditures (13) (18) Asset Sales 3 - $595M 55% Variable 2024 – 2026 Working Cap
Slide 12: Q2 and Full Year 2022 Pentair Outlook
Q2 and Full Year 2022 Pentair Outlook* • Expect strong Residential (~60% of sales) season across entire portfolio Q2’22 FY’22 • Commercial (~20% of sales) recovery gaining momentum Sales • Total Sales up ~11% to 13% • Total Sales up ~9% to 11% • Industrial (~20% of sales) Income • Segment Income up
Slide 13: We Believe PNR is a Compelling Investment Opportunity
We Believe PNR is a Compelling Investment Opportunity Our Long-Term Expectations A Strong Foundation and the Opportunity to Create Substantial Value 13 Q1 2022 Earnings Release. ©2022 Pentair. All Rights Reserved.
Slide 14: Appendix
Appendix GAAP TO NON-GAAP MEASUREMENTS & RECONCILIATIONS
Slide 15: Reported To Adjusted 2022 Reconciliation
Reported To Adjusted 2022 Reconciliation Pentair plc and Subsidiaries Reconciliation of GAAP to Non-GAAP Financial Measures for the Year Ending December 31, 2022 Excluding the Effect of 2022 Adjustments (Unaudited) Actual Forecast First Second Full In millions, except per-share data Quarter Quarter
Slide 16: Reported To Adjusted 2021 Reconciliation
Reported To Adjusted 2021 Reconciliation Pentair plc and Subsidiaries Reconciliation of GAAP to Non-GAAP Financial Measures for the Year Ended December 31, 2021 Excluding the Effect of 2021 Adjustments (Unaudited) First Second Third Fourth Full In millions, except per-share data Quarter Quarter Quar
Slide 17: Core Sales Growth Reconciliation
Core Sales Growth Reconciliation Pentair plc and Subsidiaries Reconciliation of Net Sales Growth to Core Net Sales Growth by Segment For the Quarter Ended March 31, 2022 (Unaudited) Q1 Net Sales Growth Core Currency Acq. / Div. Total Total Pentair 12.4 % (1.3)% 4.3 % 15.4 % Consumer Solutions 16.7 %
Slide 18: ROIC Reconciliation
ROIC Reconciliation First Second Third Fourth First Quarter Quarter Quarter Quarter Quarter Dollars in millions 2021 2021 2021 2021 2022 Return on Invested Capital (ROIC) Segment income $ 164.4 $ 174.9 $ 179.7 $ 166.9 $ 172.1 Reported effective tax rate 13.5 % 15.9 % 13.3 % 2.0 % 15.4 % Adjusted eff
Slide 19: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Pentair plc and Subsidiaries Reconciliation of the GAAP operating activities cash flow to the non-GAAP free cash flow (Unaudited) Three months Three months ended ended March 31, March 31, In millions 2022 2021 Net cash used for operating activities of continuing operati
Slide 20: Last Twelve Months Adjusted EBITDA Reconciliation
Last Twelve Months Adjusted EBITDA Reconciliation Pentair plc and Subsidiaries Reconciliation of Net Income from Continuing Operations to Adjusted EBITDA (Unaudited) Second Third Fourth First Last Quarter Quarter Quarter Quarter Twelve In millions 2021 2021 2021 2022 Months Net income from continuin
Slide 21: For Life
Essential Resources For Life